Don’t Wait for a Market Crash: These 2 Top Stocks Are on Sale

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The stock market has been unpredictable since the pandemic. 2022 was expected to be a year of recovery from the pandemic. But the Russia-Ukraine war has disrupted global supply chains and fueled inflation. Central banks around the world have had to reverse course and raise interest rates to the point of curbing demand and slowing the economy. Economists are divided on the 2023 outlook. Some fear a slight setback in the first half, followed by a rebound in the second half. Some economists say Canada can avoid recession.

When should you wait for the market to fall?

The stock market fell in December 2022 on fears of a recession, but rose in January on expectations of a slowdown in interest rates. Investors who waited for a market dip like June 2022 missed the opportunity to ride the January rally. How not to lose opportunities? Waiting for the market to fall is not the answer

Don’t buy a stock near its 52-week high unless the market is out UnderratedIts growth, even at its 52-week high Bombardier. But you can buy a stock just above its 52-week low, but below its 52-week high, and you believe it will break through its 52-week high.

If you have shortlisted a few stocks and studied their risks and growth potential, you will know what conditions will drive stocks and what will pull them back. To help you out, here’s an overview of the expectations and risks associated with certain stocks. Investment in shares responsibly.

AMD stock

Advanced Micro Devices (Nasdaq: AMDThe stock rose nearly 18% in January after a more than 60% drop in the tech stock’s 2022 selloff. Weak PC demand, chip supply shortages and the company suffered. Ethereum Convergence reduces the need for high-computing graphics cards. But all these challenges are behind it now

Weak PC sales could undercut AMD in 2023, while strong server chip sales could lift the stock. AMD’s data center business could see growth in the second half from its five-nanometer (nm) Genoa server central processing units (CPU) and the upcoming five-nm Bergamo cloud-optimized CPU. Also, the Xilinx acquisition will complement AMD’s high-performance computing roadmap. AMD is still less than 25% ShareIn the server chip market, it provides enough room to expand into the growing server market.

Now is a good time to buy AMD stock, which is still trading 45% below its 52-week high. It could reach or surpass its 52-week high as 5G infrastructure leads to Internet of Things proliferation. You can buy this stock through your tax-free savings account (TFSA) and keep your investment income tax-free.

Share Nuvei

Nuvey (TSX: NVEI) is another growth stock that has lost 80% of its value since October 2021 as e-commerce shows its first signs of weakness. The payment platform earns a commission on each transaction. Hence, it looks to increase volumes by helping businesses transact in over 200 markets, 150 currencies and over 580 alternative payment methods. The company is expanding its reach into other verticals such as cryptocurrency platforms, regulated sports betting, airlines and other digital products.

Nuvei stock will grow as businesses and people transact more, which happens in a developing economy. Despite weakening demand from the bursting crypto bubble and rising inflation, Nuvei’s third-quarter volumes rose 30%, and revenue rose 7%. Although it is one of the slowest growth, it has performed well considering the weak macro environment. It’s one of the few software stocks that’s still profitable ($62.4 million in adjusted net income in the third quarter).

Nuvei’s growth will be moderate in the short term as transactions are slow, but will pick up in the medium term as the economy recovers. When the stock surged more than 30% in January, there was a glimpse of what the recovery might look like.

It’s a good time to buy the stock, as it’s trading below its initial public offering price of $46 – 53.5% from its 52-week high. If the stock can achieve its long-term growth target of 30% revenue growth and operating margin of over 50%, it may be on a long-term growth trajectory.

Position Don’t wait for the market to fall: These 2 key stocks are on sale appeared first Motley Fool Canada.

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Further reading

• What’s next for Magnetic Forensics stock after hitting a 52-week high last week?
• Got $3,000? 3 TSX Growth Stocks to Buy in January 2023
• 3 TSX Stocks Too Cheap to Ignore
• 3 Undervalued Canadian Stocks Worth Buying Now
• Calling all intrepid TFSA investors: 2 tech stocks to buy in a steep selloff

The Motley Fool has designations and suggests Nuvey. The Motley Fool recommends advanced micro devices. Stupid contributor Pooja Dayal No position in any of the stocks mentioned. A motley fool Disclosure Policy.

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